(Bloomberg News circulated the following article by Rip Watson on November 18.)
CALGARY — Canadian National Railway Co., the North American railroad with the highest profit margin, said it will report 20 percent growth in earnings per share this quarter and profit growth of as much as 15 percent next year.
The Montreal-based railroad said in a statement on Business Wire today that the growth in 2006 would be from 10 percent to 15 percent. A 20 percent increase would bring fourth quarter earnings to about C$1.55 ($1.31) a share, from C$1.29 a share in last year’s fourth quarter.
The railway also said it planned to top C$9 billion in sales by 2010. Canadian National is aiming to raise its profit margin to 40 cents per dollar of sales, from 35.6 cents for the first nine months of this year. The second-best margin among North American railways is Norfolk Southern Corp. at 24.3 cents.
The forecast by Canadian National is based on fuel costs of $55 a barrel and a Canadian dollar valued at about 85 U.S. cents.
Canadian National’s shares rose C$1.77 to C$91.39 yesterday in Toronto and have gained 25 percent this year.